FOOD VENDING MACHINES-SCORING OVER RESTAURANTS?

In any country where labor cost is very high, there is adequate incentives to go for systems that can circumvent human intervention. Vending machines that can offer packed foods, hot and cold beverages, cigarettes etc are ubiquitous by their presence in many developed countries where employing humans becomes cost prohibitive. Even in a country like Singapore, fresh cut fruit vending machines can be seen. These coin operated or credit card enabled machines serve a useful purpose for providing instant service to consumers. How ever the foods provided by these machines are not considered to be good quality as per the perception of the consumers. Surprisingly, despite the above limitation, vending industry is growing rapidly, obviously because of the ability of the consumers to tolerate sub-par foods as a trade of for convenience.

"I also learned, within minutes of arriving in the vast brightly lit hall, that the vending industry takes in $30 billion annually; and 100 million people, according to NAMA, find sustenance every day from 7 million vending machines. It is an industry never far from reach, steadfastly burrowed into our lives, and yet so intrinsic we rarely notice it or consider that the food inside vending machines has been made by humans, and that those people believe that vending machine food can taste good".

Consider the Indian condition. The only type of vending machine that is installed all over the country is the ATMs that dispense "notes" through swiping credit or debit cards. If ATM industry reflects a story of success, why food vending has not taken root in the country is a mystery. During the beginning of the Operation Flood program of NDDB, it was conceived that fresh milk vending machines would dispense milk for 24 hours a day but in stead milk booths were set up manned by personnel. Probably millions of small retail stores that dot the country offering personalized service to their customers preempt the necessity of vending machines which require enormous back up organization for servicing and maintaining hygiene and sanitation and timely refilling. Uncertain power supply makes the task all the more difficult, especially in case of refrigerated products.

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com

CONSUMER TRENDS-CONVENIENCE FACTOR TO THE FORE

Convenience factor has been the driving force for the development of food processing industry and most of the consumers do not mind paying "add on" to the basic cost of processed foods provided it is not unreasonable. Of course other factors like culinary quality, health and nutrition, good shelf life and attractive packaging also do contribute to consumer decision to buy products at prices higher than the intrinsic cost. In spite of great strides made by the food industry, convenience seems to be the over riding factor that assures even growth for the processed food sector.

"While these are nothing new, portable foods continue to be a food industry trend. Providing convenience for our 'on-the-go' society is a must and consumers continue to spend their cash on handy packaging that allows them to skip portioning themselves and simply grab something out of the kitchen, throw it in their bag and go. The cost of the packaging drives up the cost of these pre-portioned gems, however the convenience continues to beat out the cost and consumers keep this food industry trend going".

What is causing alarm is the run away escalation in the cost of foods that are processed and packed making the consumers wary of the motives behind the high profile, mass promoted food products, especially those with low caloric density. One wonders whether consumers will revert back to lesser convenient products that require some preparation in the kitchen if the upward trend in food product prices continue to gallop with practically no relation to the basic cost of raw materials that go in making these foods by the manufacturer. Industry will regret in the long run if affordability of their products to consumers is ignored and if it thinks that saturation promotion of products will drive consumers in hordes to buy them, same may prove to be fool hardy!

V.H.POTTY
http://vhpotty.blogspot.com/
http://foodtechupdates.blogspot.com